Real Estate, Infrastructure Losses Sap Ontario Teachers’ Returns
- OTPP trailed benchmark gains by nearly 7 percentage points
- Higher interest rates weighed on assets including property
Jo Taylor, chief executive officer of Ontario Teachers' Pension Plan, during a Bloomberg Television interview on day three of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, Jan. 18, 2024. The company gained 1.9% last year, underperforming its benchmark by a wide margin.
Photographer: Hollie Adams/BloombergOntario Teachers’ Pension Plan gained 1.9% last year, underperforming its benchmark by a wide margin, as it lowered valuations on real estate and infrastructure investments hit by higher interest rates.
The write-downs also stemmed from “asset-specific events that negatively impacted select investments,” the pension plan said in a statement Tuesday, without specifying more. The falling valuations cut into gains from holdings including credit and stocks.